Indian hospitality giant OYO has made a strategic move to strengthen its foothold in Europe by acquiring Paris-based premium rental homes company, CheckMyGuest, for a total of Rs 230 crore. The acquisition is structured as a cash and stock deal, signaling OYO’s continued expansion into the global market.
OYO CheckMyGuest Acquisition
The acquisition includes OYO issuing 79.2 million shares to acquire CheckMyGuest. While the exact cash component of the deal was not disclosed, OYO will gain access to CheckMyGuest’s inventory of premium homes through a share swap over time. This acquisition also extends to CheckMyGuest’s subsidiaries, such as HelpMyGuest (HMG), a housing renovation business, and Studio Prestige, which manages luxury rental apartments.
CheckMyGuest, founded in 2016 by Julien Madar, Joffrey Ichbia, and Kevin Cohen, offers vacation rental properties, including homestays and luxury apartments, primarily in Paris. The company had a prior valuation of $110 million before its acquisition by OYO.
OYO Recent Funding Round
This acquisition comes on the heels of OYO’s successful Series G funding round, where it raised Rs 1,457 crore (around $175 million) at a valuation of $2.37 billion. The funding round was led by Ritesh Agarwal’s Singapore-based entity Patient Capital, along with J&A Partners and ASK Financial Holdings. OYO raised nearly Rs 1,040 crore in this round, following an earlier collection of Rs 416.85 crore.
Strengthening European Presence
As of March 2024, OYO managed approximately 85,000 homes across Europe, adding to its strong presence in countries like Croatia, Germany, Denmark, Spain, and Austria. The company also operates 18,103 hotels across India and Southeast Asia.
With this acquisition, OYO adds CheckMyGuest to its growing list of European acquisitions, which already includes Direct Booker, Danamica, and Leisure Group. This move aligns with OYO’s goal of enhancing its operations in premium home rentals and expanding its market share in Europe’s growing vacation rental industry.
Opportunities Ahead
CheckMyGuest’s co-founder Joffrey Ichbia expressed excitement about joining OYO on LinkedIn, stating, “It’s official! We’ve joined one of the largest hotel groups in the world! This merger is a major milestone for us and opens up incredible opportunities in terms of development, new markets, and careers.”
For OYO, this acquisition not only enhances its portfolio but also opens up new avenues for growth in the European market. The company is positioning itself to capitalize on the increasing demand for vacation rentals and premium properties globally.
OYO’s acquisition of CheckMyGuest marks another significant step in its journey to become a dominant player in the global hospitality industry. With this acquisition, OYO expands its presence in the premium rental market in Europe, enhancing its ability to offer luxury stays and broaden its market reach. As OYO continues its growth journey, it will be interesting to see how this acquisition shapes the company’s future in the travel and hospitality sector.
